The company is not using any of these funds. Some directors are selling some shares for personal reasonsafter a strong run up. The main two sellers are selling 76M dollars representing 2% of their holdings. The market over reacted. Good time to buy.
Just finished selling MORL and added to my BDCL. mREITS should not do well in a rising rate environment either because of the flattening of the curve,initially, or because of declining BV if/when long rates rise. BDCs ,,on the other hand, should do well because of their Libor based loans.
Yesterday I finished selling my MORL and adding to my BDCL. In an environment of rising rates mREITS should not do well either because of the flattening of the curve (initially) or because rising long rates affects their BVs. BDCLs,on the other hand, should do well because of their Libor linked loans, not unlike banks.
Good to know someone knows when rates will turn again. As to TBT, it will only protect against a rise in long rates. If short rates rise and long rates do not,which may well happen initially, MORL will get crushed.
I agree. I mentioned the law suit because it is the only thing out there. Before, it was falling oil prices, now I do not know.
Dividend is hard to anticipate as it depends on the quarter's realizations. I believe what weighs more is last quarter terrible results. My bank's analyst (JPM's) has a buy rating and a PT of 25.
BDC's and mREIT's are different. The latter should not do well when short rates rise. If long rates rise, their BV goes down. If they do not rise,the flattening curve hits their earnings. They depend on their hedging ability.
BDC's,on the other hand, benefit because of their Libor based loans.
They pay the dividend and short the stock via a derivative. They aim for a wash and use the money they get as they see fit. just my guess.